Ginger

Ginger exporter, Organic Mountain Flavor

Organic Mountain Flavour (OMF) is a private limited company that buys and sells organic raw ginger and exports dried ginger slices to India and Europe. CONNECT has committed to co-invest with OMF to expand its organic ginger processing facilities in Chinchu and Sahajpur by strengthening down stream supply chains in CONNECT's core districts and the Mid and Far West region more broadly.

Thousands of ginger farmers in west Nepal have an opportunity to jump from subsistence to commercial agriculture. They just need a reliable market system that includes steady demand and better prices. Bajura and Doti have potential for high value crops, including ginger cultivation but farming communities have limited access to information on the commercial potential of organic ginger production.

CONNECT brings together players that can form this market. We have connected OMF with hundreds of ginger farmers, so they get a steady supply, and the farmers get steady demand.

Milestones achieved during F.Y. 2016 - 2017 include:

Total quantity traded has grown by 65% year-on-year and revenues increased by 30%

Second processing facility established in Sahajpur, Kailali

Exisiting buyer relationships are scaling and new markets discovered

OMF is in the final stages of organic certification from ECOCERT of 1050 ha farmer by 1726 farmers in its downstream supply chain

New banking relationship developed, larger working capital limits sercured and value chain financing product in place to enable scale up

Resources

In an unprecedented move to improve financial inclusion and support economic growth in the Mid and Far West of Nepal, Prabhu Bank Limited (PBL) has taken the bank to farmers’ door steps significantly easing a normally cumbersome and expensive process for farmers.

OMF staff have travelled to the farm gate to help farmers complete application forms and collect premiums. Completed forms and payments were then submitted to the Shikhar Insurance branch in Dhangadhi for processing.

Farmers are investing to purchase insurance policies, benefitting from the 75% subsidy available from the Government of Nepal.

OMF have facilitated loan applications for farmers to strengthen their supply chain.

A further 45 farmers in Sahajpur, Doti and 117 farmers in Surkhet, all ginger producers in OMF's down stream supply chain, have submitted loan applications to PBL.

Ginger farmers in Doti renew loans

by: ruth on: 25 Jul, 2018

CONNECT and our partner Organic Mountain Flavor Private Limited (OMF) are once again working with Prabhu Bank Limited (PBL) to offer small loans to ginger farmers in Surkhet, Kailali and Sahajpur, Doti.

Organic Mountain Flavor (OMF) has obtained organic certification of 133 hectares of land in Surkhet. The certification, granted by ECOCert, covers land farmed by 366 ginger farmers in OMF's downstream supply chain. These farmers will receive higher prices from OMF for the ginger they produce as, with organic certification, OMF is able to sell ginger at a premium price.

Loans delivered to ginger farmers in Doti

by: RAP 3 on: 21 Sep, 2017

Prabhu Bank Limited (PBL) continue to go to the farm gate to open accounts and deliver value chain financing (VCF).

PBL’s Dhangadhi Branch have distributed VCF loans totaling NPR 1.6 million to 56 ginger farmers in Sahajpur, Doti in addition to the NPR 2.95 million issued to 117 farmers in June. PBL’s Surkhet Branch are processing applications from 84 ginger farmers and, to date, have opened accounts and issued cheque books to 30 farmers.

DFID Nepal hosted a stakeholder consultation earlier today, bringing together representatives from CONNECT’s small businesses portfolio including partner Organic Mountain Flavor (OMF), its investor One to Watch, Prabhu Bank, SAFAL Partners and TR Upadhaya & Co. The meeting was an opportunity to review progress made to date, present CONNECT’s intentions for year two of partnership with OMF for DFID to consider and seek commitments from OMF, their investors and the bank to realise agreed milestones. CONNECT is delighted that the meeting concluded with assurances from the bank and investors for the timely infusion of additional investments and credit limits.

Researchers from Harvard visit Surkhet

by: RAP 3 on: 14 Aug, 2017

CONNECT are excited to be facilitating the Harvard Kennedy School's Evidence for Policy Design (HKS EPoD) team's visit to Chinchu and Taranga in Surkhet. 4 researchers have travelled half way across the world from Boston, USA to meet with ginger farmers who are part of Organic Mountain Flavor Private Limited's (OMF) supply chain. OMF is a CONNECT MSME partner. The visiting delegation are talking with ginger farmers to understand how interventions delivered through CONNECT's partnership with OMF impact and influence small farmers' decision making. The team met with OMF's Managing Director Mr Samir Newa and staff at the processing facility in Chinchu before walking 6 -7 hours through Bardiya National Park to interview farmers in their homes. The researchers are expected to share their initial observations on the impact of CONNECT's model for farmers in OMF's supply chain with DFID and us soon.